First, buy funds by name. Many investors will judge the style of funds by their names. In fact, the name of the fund is just a name. Fund companies take great pains in naming. Value, growth, selection, emerging and valuation are words with high frequency, which give investors some good hints. Moreover, many investors will judge the fund's position style according to the name of the fund, such as whether it is a large market or a small one, growth or value. In fact, apart from the fund that passively tracks the index, the name of the active management fund does not reveal much information.

Second, buy funds according to historical performance. The first thing many citizens do when buying a fund is the historical performance of the fund, the annualized income in the past three years and the income in the last three months. In fact, the fund's historical performance prediction ability is not so strong. Admittedly, the historical performance of the fund is an important reference, but the return rate of buying the fund based on the historical performance is very low.

Third, the fund company has strong strength and long operation time. To buy a fund, we must first check the strength of the company and see how long it has been in operation. Just like looking for a husband, you need to find a family with a good background.

Fourth, only invest in index funds that strictly track the broader market. Buffett once recommended index funds to ordinary investors in public on the grounds that index funds are passive investments, with transparent positions and low rates, and their long-term returns are not worse than those of some active management funds with high rates. In fact, Buffett is talking about the United States, a very effective and long-term slow market, while the China market is quite different. The Nasdaq index has risen nearly six times since 2009, and few active funds can outperform this index for a long time. Of course, index funds with low fees are the best choice.

5. To buy a fund that suits you, you should choose to buy open, closed, high-risk, low-risk, combined and stock-based funds according to your own situation.

Summary: The above are some introductions about how to select funds. After beginners know this information, they basically know how to buy funds. Again, investment is risky, so please invest carefully. With investment funds, you'd better listen to the advice of some other people.